"Only 4 Months Left..." This Year's 'Big Sale' Schedule Still Uncertain

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Kim] The project schedules for reconstruction complexes in the Gangnam area of Seoul, which were planned for general sale, remain uncertain. Some express concerns that if the projects are delayed, it may become difficult to supply within this year.

According to the maintenance industry on the 2nd, among the major Gangnam reconstruction complexes that initially aimed for sales in the first half of the year, the sales schedules have not been finalized due to internal conflicts within the associations caused by the Housing and Urban Guarantee Corporation (HUG)'s high sale price review and the impact of the price ceiling system.

A representative complex is the Dunchon Jugong Apartments in Dunchon-dong, Gangdong-gu. Dunchon Jugong, a mammoth complex undergoing reconstruction with a total of 85 buildings and 12,032 households, has attracted the most attention in Seoul's sales market this year with 4,786 units planned for general sale. However, the association's executive team, which was dismissed at last month's extraordinary general meeting, filed for a provisional injunction to suspend the dismissal, leading to a legal dispute. The background of the conflict is that the sale price per 3.3㎡ notified by HUG was 29.7 million KRW, significantly lower than the association's planned price of about 35 million KRW. Industry insiders predict that general sales will only be possible after the election of a new association president and executives, as well as the resolution of disputes with the dismissed former executive team.

Raemian One Pentas, which is reconstructing Sinbanpo 15th Complex in Banpo-dong, Seocho-gu, is also facing the application of the price ceiling system if it does not submit the HUG sales guarantee certificate to Seocho District Office by the 10th. The association applied for the resident recruitment announcement before the price ceiling system was applied on July 29 but has not yet submitted the sales guarantee certificate. A Seocho District official said, "According to relevant laws, if the guarantee certificate is not submitted by the 10th, the application for the resident recruitment announcement will be rejected." Currently, this complex is also unresolved in litigation with Daewoo Engineering & Construction, whose construction status was canceled due to construction cost issues.

However, Raemian One Bailey, which is reconstructing Sinbanpo 3rd Complex and Gyeongnam Apartments in Banpo-dong, is reportedly moving forward with sales at the general sale price proposed by HUG (48.91 million KRW per 3.3㎡). The construction company Samsung C&T's website shows the sales schedule for this complex is set for October.

Meanwhile, according to Real Estate 114, the number of housing units supplied in Seoul from the beginning of this year to August is 32,930 units. Considering the planned supply of 65,502 units for this year, less than half of the planned supply has been absorbed. The industry views the delay in many projects as due to the price ceiling system. A maintenance project official said, "Although house price increases have slowed due to the government's strong tax and loan regulations, if supply shrinks due to sales delays, applicants waiting for subscription may turn their attention to the existing housing sales market."

This content was produced with the assistance of AI translation services.